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Subject:
Brand extension
Category: Business and Money > Advertising and Marketing Asked by: lindstrom-ga List Price: $10.00 |
Posted:
02 Jan 2004 17:01 PST
Expires: 01 Feb 2004 17:01 PST Question ID: 292535 |
I'm looking for two answers related to brand extensions: 1. Any interesting statistics indicating the growth of brand extensions and trends 2. Very interesting in-depth cases on brand extension - preferably less traditional cases - however this is not a must. Good luck, martin |
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There is no answer at this time. |
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Subject:
Re: Brand extension
From: jackburton-ga on 02 Jan 2004 18:10 PST |
Hi Martin! ................................................ "Wireless brand extension is very complicated and very new. There are only a handful of people working in this field, but our estimates are that well over 2000 wireless brand extension projects could go online in the next 5 years. WirelessDeveloper will be working diligently to get our developers in front of these brandholders to secure these deals. The most celebrated wireless brand extension deal in the market is the Who Wants to be a Millionaire game, licensed from Celador in the UK and developed/promoted by Codetoys/Motorola. There have been other deals, like a Britney Spears Crossroads movie promotion and other Hollywood-driven tests. The pattern we are looking for is always the same: use one media to drive another (use the wireless apps, ringtones, graphics, trivia to drive ticket sales to the movie and other promotional items)" http://www.wirelessdeveloper.com/businessmodel/brand.htm ................................................ Some Case Studies: Pampers and Huggies brands are being extended beyond nappies into all aspects of baby care http://www.tutor2u.net/business/marketing/casestudy_%20products_nappies.asp Minute Maid Corporate Website - Successfully Creating a Brand Extension Online http://www.sharpe-partners.com/pdf/sp_casestudy_mnm.pdf "Virgin: Brand Extension or Brand Dilution?" http://www.ecch.cranfield.ac.uk/scripts/colis/cgirecrd.exe?rn=503-109-1 (you'll need to register to view the whole case study) "Olmeca Tortillas" & "Olmeca Tequila" http://www.caterpillarconsultancy.co.uk/nprodlnch_cs.htm Air Force recruits next generation of civilian leaders using Experience solution http://www.experience.com/employers/resources/case_studies/airforce_case.php ?xtreme xtension? "the fruity flavorits range was initially developed for children by leveraging off the much loved characters of winnie the pooh and toy story. to capture a teenage market, creative vision developed a brand extension strategy featuring dragon ball z® characters. the brand was ?z-powered? into the fearsome fruity flavorits xtreme." http://www.creativevision.com.au/html/packaging/Zpower.html How DrinkTank Services developed a new category for a fruit and vegetable juice manufacture. http://www.lakesidebrands.com/case_details.asp?CaseID=5 Betty Croker http://www.shealink.com/cs_generalmills_betty.html "Dove" "Dove is an outstanding case study in brand extension. For decades it was seen as little more than a cleansing product. But in the mid-80s Dove launched its moisturising body-wash that, backed by positive clinical studies and a communications campaign featuring consumer testimonials, saw sales take off. The brand has been extending its product range ever since." http://www.unilever.com/brands/hpc/dove.asp?ComponentID=9234&SourcePageID=40 ................................................ Hope this is useful to you! |
Subject:
Re: Brand extension
From: boquinha-ga on 02 Jan 2004 18:41 PST |
Hi Martin! I found this explanation with 2 examples: "Brand extension refers to the use of a successful brand name to launch a new or modified product in a same broad market. A successful brand helps a company enter new product categories more easily. For example, Fairy (owned by Unilever) was extended from a washing up liquid brand to become a washing powder brand too. The Lucozade brand has undergone a very successful brand extension from children?s health drink to an energy drink and sports drink." Here's the website: http://www.tutor2u.net/business/marketing/brands_extension_stretching.asp Sincerely, Boquinha-ga |
Subject:
Re: Brand extension
From: boquinha-ga on 02 Jan 2004 18:42 PST |
Oops, forgot to add my search strategy: Interestingly enough, my search words for the above comment were "brand extension." ;) |
Subject:
Re: Brand extension
From: journalist-ga on 02 Jan 2004 20:13 PST |
Greetings Martin: "GE, Martha Stewart and Sunkist are just a few examples of the companies who have discovered that brand extension licensing can provide powerful marketing benefits and generate significant royalty revenues. Each of these companies has generated over $1billion in annual licensed product sales." From http://www.goldmarks.net/how_it_work.html ********* "Brand Equity Extension Examples - There are countless examples of brands that have been effectively leveraged into new categories. Take Arm & Hammer. From its long brand heritage in baking soda, significant other Arm & Hammer businesses have emerged ? from toothpaste, to air freshener to laundry detergent. Each product builds upon the equities of the parent brand ? clean, fresh, good value ? while strengthening overall brand equity. Here are other examples: BRAND EXTENDED TO: IBM Hardware IBM Consulting Group Disney Theme Parks Disney Cable, Cruise Lines eBay Online Auction eBay Power Sellers Tools Victoria?s Secret Victoria?s Secret Cosmetics Of course, brands can be stretched too far, risking brand equity erosion, as in the case of Levi?s shoes or Clorox laundry detergent." From http://www.equibrandconsulting.com/datafiles/equity.pdf ********* "In the US, Anheuser-Busch created the Eagle brand for its honey roast peanuts as part of a strategic platform for launching other products. The Eagle banner was easily extendible to a variety of different snack foods. (The Eagle is also a prominent part of Anheuser's Busch's corporate heritage appearing on the corporate crest)." [Eagle Brand Snacks...I never realized who the parent company was until now!] "Aunt Jemima is famous in America for its association with pancakes. Recently, the company began promoting a broader association by moving from a product category, pancakes, to a usage situation, breakfast. This association comes naturally to American consumers (as breakfast is prime time for eating pancakes) and has enabled Aunt Jemima to extend to various breakfast lines." From http://www.allaboutbranding.com/index.lasso?article=91 ********* When Brand Extension Becomes Brand Abuse. Brandweek, Oct 26, 1998, by Scott Davis "Kraft's Jell-O Cheesecake Snacks may be the ultimate success story in brand-family extension. It all started with plain, traditional Jell-O. From there, Kraft introduced Jello in a cup to take advantage of the convenience trend. Jell-O then expanded to pudding and pudding in a cup. Finally, leveraging the entire portable Jell-O snack category, Kraft introduced cheesecake snacks in a cup, sub-extending its own Philadelphia Cream Cheese in the process." FROM http://www.findarticles.com/cf_dls/m0BDW/1998_Oct_26/53170118/p1/article.jhtml "The last ad I saw this past weekend was for Mercedes C230 priced at $30,000. I had thought that Cadillac's Cimarron introduction several years ago (a low-priced Cadillac) would have set the automotive industry straight to one basic truism of brand management: One brand for one type of consumer and price point. If you want to expand, develop new brands. Honda recognized that to get to higher price points beyond the Accord and Altima, they needed to develop Acura. Same with Toyota and Lexus and Nissan and Infiniti...Other recent examples of brand abuse include Ajax and SOS glass cleaners (won't that hurt my glass?) and Pepsi Clear (tell me why clear is good again?)." From http://www.findarticles.com/cf_dls/m0BDW/1998_Oct_26/53170118/p2/article.jhtml?term= [Both these links are the same article, different pages.] ********* "Choice Hotels International launched a brand extension for its Clarion product that it believes will help attract unique hotels that can garner an average daily rate of at least $90." From http://www.findarticles.com/cf_dls/m3072/8_218/102390310/p1/article.jhtml ********* "Mountain Dew Code Red, Bud Ice, X-treme Jell-O, Snickers Ice Cream, and Tropicana smoothies: all are examples of extending a brand. In some cases, this is a case of pseudo-variety; in others it is cross,-branding between two product segments...The article sites the brand-extension winners, like the Kraft/Nabisco brands Oreo Double Stuff, Mini Oreos, and Chips Ahoy Cremewiches, but also the losers, like Ooey Gooey Warm 'N Chewy Chips Ahoy!, a microwaveable cookie. The cost of that failure amounted to $17 million, showing that even brand extensions can be risky." From http://www.oligopolywatch.com/2003/12/23.html ********* I believe the article titled "Deep? and 'Surface' Cues: Brand Extension Evaluations by Children and Adults" By Shi Zhangsanjay Sood will be of interest to you. It contains quite a bit of information. See http://www.anderson.ucla.edu/faculty/shi.zhang/pdf_files/deep_and_surface.pdf Also see the paper "A taxonomy of brand linkages: the brand-relationship-interaction (BRI) matrix" at http://bss2.bham.ac.uk/business/papers/taxonomy.htm ********* "Strong brands have also shown their true value in their ability for extension - one of the best examples of this is Virgin, whose business interests extend across many different categories, such as transport and travel, banking and investments, cosmetics, health clubs and FMCG products, to name but a few. And Virgin is not alone, as there are many other examples of brand extension, such as with Caterpillar, Bic and Dunhill." From http://www.mediatoolbox.co.za/pebble.asp?relid=3038&p=40 ********* "Whether to do a brand extension is difficult to know. Nabisco chose to do a whole new brand when they did Snackwells as opposed to linking it to Oreo or Ritz crackers. It worked." From http://food.oregonstate.edu/prodev/pr_brand.html ********* "Brand extension has seen Cosmopolitan launching a variety of spin-offs, such as Hair and Brides. Also, badging consumer goods, such as yoghurt and cars" From http://www.magforum.com/1999.htm ********* "The traditional core of brand extension activity has been licensing and merchandising support for media brands or individual TV programmes. At BBC Worldwide, for example, there is a compelling financial logic in taking pre-school shows like Teletubbies and Tweenies into toys, books, videos and apparel. For Channel 4, CD spin-offs from drama series Queer As Folk are good examples of how to open new routes to the consumer's wallet (see panel opposite)." From http://www.mediaweek.co.uk/ThisWeek.Features.View.aspx?ContentID=75 ********* "Convergent" magazines -- print spinoffs of electronic media or cyberspace, including ESPN The Magazine and Martha Stewart's highfalutin home-and-garden journal -- are expected to do well in the next century. They offer fickle consumers a chance to interface reading with content on TV, radio and the Internet. Know as "brand extension" or "complementary programming" the practice is a survival tactic for hard-copy products in an electronic world. Magazines, says Husni, "are about convenience." From "Have Niche, Will Publish" at http://www.findarticles.com/cf_dls/m1571/26_15/55241342/p1/article.jhtml [Yahoo has a magazine, too, as does Nintendo and many other others.] ********* "Procter & Gamble Tide Brand Extension Extension of a Flagship Brand: Tide Racing 2002 Background In an effort to leverage Tide?s association with NASCAR, Tide?s packaging and promotion materials have traditionally evoked the imagery and excitement of NASCAR, taking on a racing-oriented appearance. Landor?s challenge was to maximize the NASCAR association..." From http://www.landor.com/index.cfm?fuseaction=cPortfolio.getCase&caseid=584 ********* "Visa Platinum/Asia Pacific Brand Extension New Card Design to Communicate Exclusivity Background Landor was asked to develop a series of designs based on a black and silver color combination, which had scored well in an earlier research phase. The designs needed to reflect Visa Platinum?s brand platform of rarity and exclusivity." From http://www.landor.com/index.cfm?fuseaction=cPortfolio.getCase&caseid=672 ********* "CBS has also learned the value of brand extension from NBC's "Law & Order" franchise, said John Rash, a buyer for the Chicago ad agency Campbell Mithun." From http://www.kimdelaney.org/Kim_Delaney_News.html NOTE: In this vein, there are countless examples. See http://en.wikipedia.org/wiki/List_of_television_spin-offs for a comprehensive list beginning with: From All in the Family to **The Jeffersons **Checking In **Archie Bunker's Place **Maude **Good Times **Gloria **704 Hauser Also, actors in brand extension: My Favorite Husband (radio) progressed to I Love Lucy to The Lucy-Desi Comedy Hour to The Lucy Show to Here's Lucy and The X-Files spun off The Lone Gunmen. The same with cinema attractions: Alien ----> Aliens ----> Terminator Die Hard Jason Freddy ad naseum See http://www.amazon.co.uk/exec/obidos/tg/listmania/list-browse/-/27OA41B5YPFCZ/t/202-3622484-7266237 for a short list. See http://www.rateitall.com/showlist.aspx?listid=697 for a longer list (by movie, not group.) ********* I hope I haven't overwhelmed your reading time with these examples. Your questions are so interesting to research that I became quite obsessed with this one! Best regards, journalist-ga SEARCH STRATEGY: "brand extension" examples "brand extension" ~research OR ~study "brand extension" spin offs "brand extension" spinoffs "television spin-offs" "television spin offs" "television spinoffs" "movie sequels" list "movie sequels" all |
Subject:
Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 20:43 PST |
Hi Martin! FTD Floral Company ?Floral company FTD plans to extend its brand into home decor, gardening and gifts under the FTD Collections umbrella.? ?FTD Lawn and Garden will include gardening gloves, tools, wheelbarrows, flower pots and seeds. FTD Home, covering home decor and improvement, will range from wallpaper to paints and fabrics to throw rugs. FTD Occasions will feature gift products that can be thematically grouped and will include flatware, vases and chocolates. The new lines will have broad distribution to mass merchants and specialty retailers and will be supported with significant media spending. FTD, Downers Grove, III., spent $13.1 million in 2000, per CMR.? Brandweek, May 7, 2001, http://www.findarticles.com/cf_0/m0BDW/19_42/74521258/p1/article.jhtml Brand extensions heat up as vendors get creative. Lego: ?Lego has probably taken this theme further than others by introducing its brightly colored construction bricks into the conventional apparel and media families. But it has also ventured into three vastly different fronts in recent years, with the creation and expansion of its Legoland theme park program (opening soon in Carlsbad, Calif.), its Mindstorms robotics division and now with its Playseat Vehicle Activity Center, created in partnership with Johnson Controls.? Discount Store News: March 8, 1999 http://www.findarticles.com/cf_0/m3092/5_38/54121693/p1/article.jhtml The case of National Geographic: "We are the most successful example of magazine brand extension," said Loreen Ong, president of the National Geographic Channel, which is a joint venture between the magazine and Fox Cable Networks. "It really goes back to what the National Geographic brand happens to be. It's about exploration, science and adventure. It's about spectacular imagery and great storytelling." Yahoo News http://au.news.yahoo.com/031210/11/mvgf.html Brand Extensions ?It seems that everywhere we look these days we see brand extensions. Jim Beam?s name is now on barbecue sauce, Dannon is selling Dannon water. The Sony name is on everything from Playstations to Walkmans to digital phones, DVD players, notebook computers to even record labels. The list is endless- Jello Pudding Pops; Skippy Peanut Butter Bars, Ralph Lauren sheets. Bic even once tried to put its name on perfume.? Marketingprofs.com http://www.marketingprofs.com/preview_dp.asp?file=/Tutorials/brandextension.asp Statistics: ?The average innovative non-food brand extension with at least one new category benefit delivered a 66% higher year one sales return.? ?over the most recent six reports, non-food Pacesetters providing at least one "innovative" new benefit represented 26% of new brand extensions. The majority ? 74% of the total 502 successful new brand extensions ? were judged to be close copies of lead brands within their categories, lacking new benefits versus consumers? category expectations. While "cloning" the category leader is usually safer and easier, the continual squeeze for space risks being "me-too"ed off the shelf. Innovation truly pays out. New competitively superior line extensions over the 1997-2002 period reaped higher year one returns. The average innovative non-food brand extension delivered a 66% year one sales bonus compared to the average cloned extension.? Information Resources, Inc. http://www.infores.com/public/timesandtrends/tt_factoid44.htm Pie Charts http://www.infores.com/public/timesandtrends/images/tt_factoid44.jpg Download PDF http://www.infores.com/public/timesandtrends/tt_issue13.pdf Astounding failure rates ?According to a 1997 US study by Ernst and Young, there is a 67% failure rate among truly new products (meaning products that actually create a new category). New brands entering an existing category experience a 50% failure rate and perhaps most surprising, they found an 84% failure rate among brand extensions. The reason for this high failure rate among brand extensions? Ernst and Young cited a fundamental lack of competitive differentiation. The proliferation of undifferentiated brand extensions is symptomatic of a discipline that is in desperate need of some prescriptive principles regarding brand architecture.? ?According to Eileen Roche in the March, 1999 edition of Harvard Business Review, 90% of all new consumer packaged goods introduced each year are line extensions. When you factor in the escalating costs of new brand launches it is not surprising to see so many line extensions. However, there may be a false economy in this thinking. A study by Research International in London showed that line extensions rarely add more than 10% to sales ? while according to Deloitte and Touche, most fail completely.? Fallon Brand Consulting http://www.fallonbrandconsulting.com/article03.shtml Eighty percent of successful new products are brand extensions ?CPG execs understand the impact of having products that cross several categories at retail through brand-extension licensing (think Oreo ice cream). Eighty percent of successful new products are brand extensions, says Kirk Martensen, president and founder of Chicago-based licensing consultancy Goldmarks.? ?It certainly is a more economical way to go when you are bringing out a new product with an existing brand,? Riotto says. ?You already have consumer awareness and trust.? Promo Magazine: Apr 1, 2003 http://www.promomagazine.com/ar/marketing_branding_exclusivity/ 75% new products are brand extensions ?Brand Extension Branding: Use one of its existing brand names as part of a brand for an improved or new product, usually in the same product category.? University of Delaware http://www.udel.edu/alex/chapt12.html Search criteria: Brand Extension OR extensions +marketing I hope you find my findings useful. Best regards, Bobbie7 |
Subject:
Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 20:51 PST |
Martin; Brand trends for 2003 The founders of Idea Engineers, Mandy de Waal and Janice Spark, look at brand trends for the coming year and beyond. Brand extensions will drop off, while marketers will realize the value of old-fashioned service. ?In a frenetic market, marketers will learn that less is more and that the road to increasing market share is paved with good, old-fashioned service. In recent years brands have increasingly engaged in extensions to increase market share. The coming years will show that there is power in a narrower focus as brands return to the basics and companies learn that growth is often achieved through the simplest of things ? brilliant service.? Idea Engineers: Press Release http://www.biz-community.com/PressOffice/PressRelease.aspx?i=209&ai=1373 Best regards, Bobbie7 |
Subject:
Re: Brand extension
From: bobbie7-ga on 02 Jan 2004 21:12 PST |
Martin, Bic is another example of Brand Extension. ?For example, Bic? is a strong brand name with years of experience in marketing low-cost disposable plastic products such as the Bic? pen. Thus, Bic is positioned well to introduce products that capitalize on these same basic strengths ? products such as disposable razors and cigarette lighters.? Brand Leveraging: August 2002 http://www.extension.iastate.edu/agdm/wholefarm/html/c5-30.html Here?s an interesting document about Gillette and Bic. http://cursos.itam.mx/bruce/Merca%201/Cases/Case%20-%20Gillette.doc Bobbie7 |
Subject:
Re: Brand extension
From: pinkfreud-ga on 02 Jan 2004 21:28 PST |
The Indian Motorcycle brand has been resurrected and extended to apparel and food service: "Imagine trying to revive a brand that has been extinct longer than DeSoto, Hudson or Packard. That's the challenge Frank O'Connell took on two years ago when he became CEO of Indian Motorcycle... Refocusing to leverage Indian's classic brand, including expanding into products beyond motorcycling, O'Connell earlier this year assumed the role of chairman... O'Connell is trying hard to establish the Indian marque as representative of a total lifestyle -- not just a single product. Brand experts point out that the potential for growth is great in Indian's market, not only for motorcycles, but for accessory lines as well. For example, Harley-Davidson Inc., which also makes apparel, had sales of $3.4 billion last year. The company is embracing the classic styling that distinguishes the brand as well as marketing a high-end line of clothing. Also, a pair of restaurants operate under the Indian Café name. 'The apparel may have a life of its own apart from the motorcycle,' says Tim White, managing director of the Boston-based Audax Group, the lead investor in Indian Motorcycle." http://www.industryweek.com/CurrentArticles/asp/articles.asp?ArticleId=1335 |
Subject:
Re: Brand extension
From: pinkfreud-ga on 02 Jan 2004 21:40 PST |
Francis Ford Coppola's "Niebaum-Coppola" brand of wines has been extended to include pasta, sauce, candles, even pens: "In 1975, Francis Ford Coppola, the five-time Oscar-winning director-writer and producer of such epic films as The Godfather trilogy, and his wife Eleanor, purchased part of the historic Napa Valley estate founded more than a century before by Gustave Niebaum, noted for its legendary Cabernet Sauvignon vineyards. In 1978, the Coppolas produced the first vintage of Rubicon, with a unique black cherry cola taste. The '79 is now fetching $200 a bottle -- if you can find one. The '94 was sensational and the just-released '95 is said to be its equal. In 1995, the Coppolas purchased the remainder of the estate, restored the Inglenook chateau to its historic dimensions, and replanted vineyards on the same rootstock used by the estate's founder. Recently, Coppola extended the brand to include a multiplicity of ventures, including a new line of mammarella pastas made from antique molds, and organic sauces, linens, pottery, candles, writing tools and pasta bowls." http://www.novusvinum.com/interviews/coppola.html Yikes, look at all the Niebaum-Coppola goodies, many of which have little to do with wine: http://info.product-finder.net/niebaum/ |
Subject:
Re: Brand extension
From: journalist-ga on 02 Jan 2004 22:05 PST |
P.S. It's true: I can actually spell "ad nauseum" ;) |
Subject:
Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:49 PST |
Hi jackburton-ga, Thanks for your contribution. I've used a couple of ideas from your work - so I've given you a small reward. Thanks for your help. All the best, Martin |
Subject:
Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:52 PST |
Hi boquinha-ga , Thanks for your contribution. Unfortantly the article didn't cover the type of info. I was looking for as my search more was focused on staticial data. Sorry about that - but thanks for your help anyway. All the best, martin |
Subject:
Re: Brand extension
From: lindstrom-ga on 05 Jan 2004 23:57 PST |
Hi pinkfreud-ga , Thanks for your contribution. Interesting stuff - the only problem was that I couldn't find in-depth cases supporting this strategy :-( Sorry about that - but thanks for your effort on this one. All the best, martin PS: I've left a small payment for you due to your effort over the past weeks. |
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